Working capital is a critical yet often misunderstood component of business sale transactions. It plays a central role in determining the true price a buyer will pay and a seller will ultimately receive. This article explores how working capital requirements affect business valuations and deal structures. We will examine how target working capital is calculated, […]
Executive Summary: Understanding and applying industry-specific valuation multiples is fundamental to accurately assessing the value of a small business. While metrics like EBITDA and Seller’s Discretionary Earnings (SDE) are commonly used in private company valuations, the appropriate multiple can vary significantly depending on the industry. In this article, we explain how these multiples are derived, […]
Your business value is important. And that´s exactly why you need to act before it´s too late. One of your most valuable assets is your business, and understanding its value is crucial for making informed decisions about its future—meaning your future. Impacted by the success of your business are your time and emotional investment, fulfillment, […]